Company Liquidation in Dubai, UAE
Company Closing in the UAE has to be dealt with high importance to avoid any future hassles with company
re-registration, residence visa processing, bank account opening and so on.
There are a lot of companies registered in the UAE incurring heavy fines due to not initiating the company closure procedure complying with the legal regulations of the UAE. The companies that have not followed the closing procedures the right way could face blacklisting and would face roadblocks when applying for a new business license in the future. Closing of a company in the UAE is a well-structured procedure that is best to be executed by partnering with an experienced Business Consultant.
PROCEDURES OF CLOSING DOWN OF A LIMITED LIABILITY COMPANY (LLC) IN DUBAI
1. APPOINTMENT OF LIQUIDATORS
A company must appoint a legally authorized Company Liquidator to carry out the company closing procedures in Dubai. ACS UAE work with you for closing your company in the most hassle-free way.
2. BOARD RESOLUTION FOR LIQUIDATION
A Board Resolution for Liquidation has to be prepared, signed & attested by the board of directors of the company.
3. CLEARANCE FROM MINISTRY OF LABOUR & IMMIGRATION
The company must obtain a clearance certificate from the ministry of labor & immigration prior to the final submission of the supporting documents.
4. BANK CLOSURE LETTERS
The company must close and obtain Bank Account Closure letters from all associated banks.
5. FINANCIAL LIABILITY CLEARANCE
All financial liabilities have to be settled by the company such as creditor payments, clients, partners, suppliers, employee settlement, etc.
6. NEWSPAPER ADVERTISEMENT
The company liquidator has to publish in the local UAE newspaper about the company liquidation and get a No Objection from all the stakeholders.
7. NON-LIABILITY CERTIFICATE & LICENSE CANCELLATION CERTIFICATE
The auditors have to conduct a financial audit and provide the Non-Liability Certificate. Now the company must approach the concerned authority (Free Zone, Department of Economic Department) where the company is registered to obtain the License Cancellation Certificate.
DOCUMENTS REQUIRED INITIALLY FOR LIQUIDATION OF COMPANY IN THE UAE
Business License Copy
Memorandum of Association
Power of Attorney (if any)
Shareholders Passport Copy
Emirates ID Copy
De-registration Application Form
DOCUMENTS REQUIRED TO OBTAIN THE FINAL LICENSE CANCELLATION CERTIFICATE
All the above documents
Company Liquidation Audit report
Newspaper copy of Company Closing Advertisement
CLEARANCE TO BE RECEIVED FROM THE CONCERNED GOVERNMENT AUTHORITIES
Electricity and Water Departments
Telecom Authority ( DU or Etisalat)
NOC letter from Landlord
Bank Account Closure letter
LLC Company Closing in Dubai generally takes around 60-65 days of which 45 days is the Notice Period after the publication of Company Closing in the UAE local News Papers to receive No Objection from third parties. Meanwhile, all other documentation and clearances are to be obtained. The next stage is the Audit report preparation by the company.
Legal firms and the Registered Auditing Agency can prepare the Audit report that is to be submitted to the concerned authorities for review.
Once the notice period is over and all documents are in place, along with the Audit report (Company Liquidation Report) and copy of the newspaper has to be submitted to the authority for review. Upon approval and payment of the license cancellation fees, the authority will issue the final Licence Cancellation Certificate.